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| One of the branches of Ziraat bank in Istanbul |
A New Player in Albania’s Banking Sector?
After a decade of consolidation, Albania’s banking sector might see its first new entrant since 2006. Turkey’s Ziraat Bank has expressed interest in opening a branch in Albania, potentially increasing the number of active banks from 11 to 12.
Ziraat Bank: A Legacy Institution
Founded in 1863 during the Ottoman Empire, Ziraat Bank transitioned into a state-owned institution in 1888. Today, it is Turkey’s largest bank, controlling 16% of the domestic market with assets surpassing $141 billion. The bank has a significant international presence, including operations in Germany, Russia, Kosovo, and the Western Balkans.
Expanding Regional Influence
Ziraat’s entry would align with its strategy to grow in the Western Balkans, where it already operates in Kosovo, Montenegro, and Bosnia-Herzegovina. If successful, Ziraat would join the National Commercial Bank (BKT) as the second Turkish-owned bank in Albania, adding institutional expertise to the market.
A Banking Sector on the Rise
Albania’s banking sector has rebounded from the 2009 financial crisis, with total assets reaching 2.06 trillion ALL as of September 2024—a 38% increase since 2019. Credit portfolios grew by 12.4% annually, reflecting strong economic recovery and financial performance.
Geopolitical and Economic Impacts
As a state-owned entity, Ziraat’s expansion could bolster Turkey’s economic and geopolitical influence in the Balkans. Its entry may bring diversification and stability to Albania’s growing financial sector.